MKS Instruments ( MKSI ) is set to give its latest quarterly earnings report on Wednesday, 2024-11-06. Here's what investors need to know before the announcement.

Analysts estimate that MKS Instruments ( MKSI ) will report an earnings per share (EPS) of $1.45.

Anticipation surrounds MKS Instruments's ( MKSI ) announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.46, leading to a 6.23% increase in the share price the following trading session.

Here's a look at MKS Instruments's ( MKSI ) past performance and the resulting price change:

Market Performance of MKS Instruments's Stock

Shares of MKS Instruments ( MKSI ) were trading at $99.57 as of November 04. Over the last 52-week period, shares are up 44.51%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about MKS Instruments

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on MKS Instruments ( MKSI ).

A total of 8 analyst ratings have been received for MKS Instruments ( MKSI ), with the consensus rating being Neutral. The average one-year price target stands at $131.25, suggesting a potential 30.47% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Amkor Tech, Onto Innovation and FormFactor, three major players in the industry, shedding light on their relative performance expectations and market positioning.

As per analysts' assessments, Amkor Tech is favoring an Outperform trajectory, with an average 1-year price target of $34.57, suggesting a potential 65.64% downside.

The consensus among analysts is an Buy trajectory for Onto Innovation, with an average 1-year price target of $249.29, indicating a potential 147.8% upside.

As per analysts' assessments, FormFactor is favoring an Buy trajectory, with an average 1-year price target of $48.0, suggesting a potential 52.29% downside.

Overview of Peer Analysis

The peer analysis summary outlines pivotal metrics for Amkor Tech, Onto Innovation and FormFactor, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

MKS Instruments ( MKSI ) ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, MKS Instruments ( MKSI ) is at the bottom compared to its peers.

About MKS Instruments

MKS Instruments Inc ( MKSI ) is engaged in providing instruments, subsystems, and process control systems used to measure, monitor, deliver, and control parameters of manufacturing processes. The company's product portfolio includes instruments, components, and systems required in manufacturing products such as flat panel displays, medical devices, and electronic materials, among others used in industrial technologies, semiconductors, life and health sciences, and research and defense markets. The company organizes itself into three reportable business segments: Vacuum Solutions, Photonics Solutions, and Materials Solutions. The Vacuum Solutions segment contributes the majority of the company's revenue, and the majority of its revenue is earned in the United States.

MKS Instruments: Financial Performance Dissected

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Decline in Revenue: Over the 3 months period, MKS Instruments ( MKSI ) faced challenges, resulting in a decline of approximately -11.57% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.59%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): MKS Instruments's ( MKSI ) ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.99%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): MKS Instruments's ( MKSI ) ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.26%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: MKS Instruments's ( MKSI ) debt-to-equity ratio stands notably higher than the industry average, reaching 2.29. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for MKS Instruments ( MKSI ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.